A PPI claim is honored in a situation where the policy holder has respected the terms and conditions. The insurance company gets in touch with its clients to help them when they are not able to pay for their loans. When a client has honored the set terms and conditions by paying the premium as required, claims are processed without delay. Failure to honour terms and conditions leads to the loss of benefits. Policy It is advisable to read the policy documents of any cover to understand what is included and what is not. PPI covers a fixed period therefore the holder should ask help and clarification from the sales agent to avoid disappointment when applying for claims. Also, some policies have special requirements such as that one must be with one company for a certain period of time in order to receive claims. Advantages and disadvantages PPI will help pay part of your loans and mortgages over a specified period of time, coming into action when you're not able to pay for loans due to sickness or death. In case of breach of the terms of the contract, benefits will be lost. Cost versus Benefit The benefit of an insurance cover should be greater than the cost one incurs into to purchase it. A cover that has no return or no benefit is never attractive to the potential clients hence it won't be purchased. Market trends The potential buyer of a PPI should undertake a research about the performance and the trend followed by this cover in the market. Good analysis can be a real eye-opener for the buyer.